When making possibly the biggest investment in your life by purchasing a property, your Conveyancer will usually provide you with information regarding your option to purchase Title Insurance.
For a one-off premium, Title insurance protects against claims for various “known” and “unknown” risks that may threaten your ownership and use of the property.
“Known” risks are any risks disclosed by the vendor or otherwise picked up by the purchaser prior to settlement.
“Unknown” risks are not identified during the conveyancing transaction before settlement but may arise during property ownership and cause financial loss to the owner.
A Title insurance policy typically protects against the following:
- Illegal building works/structures
- Incorrect signature of a document resulting in potential problems with the registration of the transfer
- Forgery, fraud, duress, incompetency, incapacity or impersonation prior to settlement
- Mortgage or title fraud after settlement
- Defective registration of a document
- Breach of covenants
- Boundary issues such as encroachments by or on the insured property
Title insurance users are generally people purchasing homes or who already own homes.
Title insurance provides a viable solution to several issues that can arise in a conveyancing transaction. It provides a wider range of options to find financially efficient ways of managing a transaction, particularly if problems arise. A Title insurance policy can provide protection in respect of disclosed known and well as unknown risks.
Title insurance does not replace the role of a conveyancer nor does it deal with non-title matters like contamination. It also doesn’t replace the necessity of having a completed building and pest inspection prior to settlement. Title insurance is a policy that covers title defects and ownership issues.
Title insurance is inexpensive and is a one-off payment usually made at the time of settlement. Title insurance is not compulsory but is recommended and to purchase a policy, ask your Conveyancer for more information.